On the record
James Standen, Broker & Emerging High Net Worth Manager, speaks outWe have long known that the world of general insurance, ‘retail’ insurance in particular, has gone mad. The sledgehammer approach of compliance, often exacerbated by the lack of clarity in the Insurance Conduct of Business (ICOB) rules, has resulted in brokers and insurers alike feeling almost duty-bound to interpret the guidelines in the most punitive way. But is the tide beginning to turn?
Treating Customers Fairly (TCF) is never going to go away… and nor should it. However, we hear that the FSA’s TCF division is now questioning some of the achievements of their brethren at Insurance Compliance. Due to the ICOB rules and the fear of being fined or stopped from trading altogether, many brokers are no longer comfortable or permitted to give advice. How can this be in the best interests of the client?
When broking myself for many years, the last question nearly all clients would ask me was “Which policy would you choose, and why?” As several products in our market are so similar, the answer always comes down to the trust a broker has with the underwriting and claims staff for sensible, honest and, above all, reasonable commercial decisions. It is not founded on pages and pages of compliant documentation, but on the trusting relationships we forge with our peers. ICOB rules don’t seem to allow for this.
It is obviously not commercially viable to visit every client, especially as we and many others are now targeting the emerging wealth as well as the traditionally wealthier sector. The cover and the extra services provided by our policies is a vital ingredient in treating them fairly, but we want to treat you and your customers exceptionally by providing ‘extraordinary service’. This does not mean doing away with important underwriting and claims questioning, but it does mean making sure things are done more quickly and efficiently. This is something that will feature heavily in our plans for 2007. Feedback is an essential part of achieving these standards, so please don’t hesitate to get in touch with us.